Wiley Accounting
Weekly Updates

Discussion Topics for Today's Classroom

Well, That’s One Way to Handle a Pay Raise

Description: On January 1, 2018 Ontario raised the minimum wage to $14 per hour from the old floor of $11.60. CBC has found that at a number of locations in Ontario, Tim Horton’s franchise owners have responded to the increased costs by a variety of cost-cutting measures, including cutting paid coffee breaks for employees and cutting benefits. The cost-cutting did not appear to be restricted to Tim’s alone. For instance, one auto dealership reportedly is switching its casual drivers to the role of independent contractors who will now be compensated on a per trip basis versus through an hourly wage.

1) Are you a student from Ontario? Will the increase in minimum wage impact you in your summer job?

2) How do you think an increase in the minimum wage impacts an economy?

3) Do you think there is a cost of negative publicity associated with a story like this? In other words, will some customers choose another coffee spot and avoid the Tim Horton’s restaurants that have cut breaks and benefits?